Coaching Corner

By By Sid Lezamiz, CRB, CRS, GRI, Real Estate Business Magazine, April/May 2007

Keep the Real Estate Pipeline Full

Don't Ignore Prospecting

If someone asked you if they could substantially increase your income with a minimal amount of investment, would you be interested?

We have all seen it happen. We sell, sell, sell, then we work, work, work on closing the sales. This translates to an up-and-down sales chart and poor positive cash flow.

With a slowing bear real estate market, it is imperative to develop a successful prospecting campaign. Prospecting is one of the most effective selling tools one can develop to ensure a successful real estate career. Yet prospecting remains the most under-emphasized productivity tool in most real estate companies today. With an industry-wide new agent dropout rate of approximately 80%, it may behoove real estate managers or trainers to maximize this marketing tool.

There is an old saying in real estate, "We quit doing what made us successful." As we fill our pipeline with sales, we have a tendency to stop day-to-day prospecting as we work on closing sales. After the pipeline is emptied, we then focus on filling it up again. This roller coaster effect can be minimized with a good solid prospecting campaign that will keep a steady stream of leads rolling in and allow our sales production to soar.

When was the last time you picked up the phone and called past customers or clients and asked them for new business, or if they knew anyone that is ready to buy or sell? How many customers or clients or future customers or clients do you have in your database that you farm for business? Do you have a drip program to follow up with adoptee buyers or sellers? Have you developed a farm area that you target with a planned, timed marketing schedule?

When was the last time you sent a personal hand-written note to a past or future client? All of today's high technology exacerbates the importance of the personal touch. Ten calls a day, five days a week, times 52 weeks per year equals 2,600 prospecting calls that convert to 260 good leads in a year. Cost of campaign? Much less than a brochure of our latest glamour shot, boasting our latest accomplishments.

Recognizing that some of us may be more comfortable with soft sell prospecting, five hand-written "just thinking of you" notes times 52 weeks per year equals 1,300 notes, which convert to 65 good prospects per year. The cost of the campaign: postage, cost of card and about 15 minutes per day of your time.

So with all the daily distractions in a real estate office, how does one keep the real estate prospecting locomotive on its tracks steadily moving forward? Whether it is sticking to an exercise program or any other self-disciplinary activity, studies indicate our success goes way up, if the same hour of each day is selected for the regimented activity.

1. Develop a database early on. If you are a new agent starting out, or a seasoned agent without a database, there's no time like the present to create one. Use a software program with a proven track record. My preference is the Agent Office 2000, a user-friendly real estate program. This program is adaptable to networking to several computers, allowing for growth from the additional business the prospecting will generate. Break your clients into specific categories: buyer customers, buyer prospects, seller clients and seller prospects. As your number of prospects grow, they can again be divided into A, B and C prospects. Seller Prospect A would be ready to list in the next 45 days. Seller Prospect B would be expected to list in the next 45 to 90 days. And Seller Prospect C would be ready to list in six months. By dividing the prospects into specific groups, we are able to select what prospect has the highest urgency to buy or sell. Logging in notes of past conversations makes it easy to once again pick up the phone and start the conversation where we left off.

2. Eat the elephant one bite at a time. Keep it simple and start slowly. Set aside 30 minutes of undisturbed time (same time each day) by closing the door in your office and start your "hour of power" calling (working up to 60 minutes of undisturbed calling or note writing each business day).

3. Use the buddy system. Find someone in your office or in a different market who you can communicate with on a regular basis to keep you on task. If your "buddy" is an agent in your office, try making your calls together. Or if your "buddy" is an agent from another market, have a conference call once a week, where you can discuss the effectiveness of your calling strategy and your progress toward goals. Once again, studies show we are much more inclined to follow through if we have someone else to hold us accountable to our goals.

4. Keep a log of daily calls and who you communicated with (simple 8.5" x 11" sheets, with days of the month, and track as calls are made). Our office policy is everyone turns in their "hour of power" call sheet at the end of each month. The sheets are kept in our personal files.

5. So what are we going to talk about? Follow the "F.O.R.D. Plan."

F = Family
How is the family?
Kids still doing well in school?
Any new additions to the family?

O = Occupation/Work
Still shooting for that advancement or did you get that promotion?
Does this mean a transfer?

R = Recreation
What have you been doing for fun?
Any trips planned?

D = Dreams
If you could go anywhere and do anything, what would that be?
How can I help you obtain those dreams?

6. Make it fun! A little light humor goes a long way when visiting, so make the conversation enjoyable. Keep the conversation to a minimum; it should not exceed five minutes. Always wrap up the conversation with a friendly reminder, "If you know someone that could benefit from my help, please let me know!"

7. Reward yourself for getting it done! Write your notes or make your calls, then take a short 15-minute break. Allow yourself to feel good about your accomplishments.

Your goal is to do what is the most dollar productive activity, at all times. Adopting a new prospecting technique may be a little overwhelming at first, but remember, if it's to be, it's up to me! Persistence is key and with little baby steps, you, too, could become a lean, mean prospecting machine!

Sid Lezamiz, CRB, CRS, GRI, is the owner/broker of Lezamiz Real Estate Company, based in Twin Falls, Idaho. He can be reached through www.lezamizrealestate.com.